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December 22, 2017

Economic development is about more than just ribbon cuttings and groundbreakings. It involves long-term, strategic support of companies large and small, often over the course of several years.

And while everything can't be packaged into neat headlines, we wanted to take you behind the scenes for a look at the work that goes on along the way.

Click the link below for an interactive look at EDC's 2017 in review. Thank you and happy holidays to those who make this work possible: our partners, investors and friends.

Here's to 2018, and a prosperous San Diego economy in the new year.

December 22, 2017

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers November 2017 data, including unemployment, new business establishments and job postings.

Highlights include:

  • The region’s unemployment rate fell to 3.3 percent in November, from a revised 3.7 percent in October. The unemployment rate is a full percentage point below the November 2016 rate of 4.3 percent, and the lowest since December 2000.
  • Every jurisdiction saw a decline in its unemployment rate in November. El Cajon and Imperial Beach saw the largest declines, both dropping 0.7 percent.
  • The labor force added 4,800 workers in November, after shedding a similar number in October. The labor force is up 8,600 compared to a year ago.
  • Year-over-year, real estate, rental and leasing growth outpaced all other key sectors, up 5.5 percent.

Read San Diego’s Economic Pulse here.

December 19, 2017

San Diego’s 2017 story was one of growth, innovation, global connectivity and collaboration across different communities and industries. And even in a year riddled with uncertainties, San Diegans remained committed to driving positive change – and EDC remained committed to delivering news about this change to your inbox each week.

So, we’re sharing San Diego's top 10 'Good News' stories from 2017 as a reminder of just how lucky we are to call this life-changing place home.

From all of us at EDC, we thank you for being a part of it (and a special thanks to Phil Blair at Manpower San Diego for sponsoring this Good News all year long). Here’s to 2018.

  SD deploys largest IoT platform in the world
San Diego might just have the smartest streetlights in the world. The city of San Diego partnered with GE to upgrade streetlights to reduce energy costs by 60 percent, as well as transform them into a connected digital network that can optimize parking and traffic, enhance public safety and track air quality. With 3,200 smart sensors, it is the largest city-based deployment of an IoT platform in the world. Read more.
 
  Airport expands, adds new nonstop flights
It was a big year for the nation's busiest single runway commercial airport. A few highlights from San Diego International Airport:
 
  Cubic moves the world
Cubic Transportation Systems is quite literally moving the world. This year alone, the San Diego transportation technology company netted more than $1 billion in contracts to implement next-gen payment systems for the New York Metropolitan Transportation Authority and Massachusetts Bay Transportation Authority. Cubic also signed contract extensions with Transport for London, and with the Metropolitan Transportation Commission in the Bay Area
 
  Amazon expands in San Diego. No, not HQ2
Amazon committed to growing its footprint in San Diego, with more than 100,000 square feet of office space leased from Alexandria Real Estate. While Amazon has a small office in Solana Beach, as well as distribution facilities in the region, this is its first major office/engineering presence in the region – with room for 500 employees. While this move is separate from its highly-publicized HQ2 bid, it does signal that Amazon sees viability in the San Diego market. Read more.
 
  San Diego's Toni Atkins tapped to lead CA State Senate
State Senator Toni Atkins is set to become the California Senate President Pro Tem. She is the first woman and first openly gay legislator to hold the leadership position – and she hails from none other than San Diego. No stranger to leadership roles, Atkins previously served nearly two years as speaker of the California Assembly. Read more.
 
 

Former Google Ventures exec chooses SD as VC fund home
While San Diego may not be viewed as VC heavy weight, this year proved that we can still hold our own in the VC ring. When former Google Ventures exec Bill Maris was closing on his venture fund, Section 32, he chose San Diego as its home. While local companies do command VC (82 deals totaling $903 million as of Q3 2017), there are few funds based here. Maris’ decision to operate out of San Diego brings a new type of VC ecosystem to town. Read more.

 
  Comic-Con commits to SD through 2021
Staying true to its 1970 commitment, Comic-Con International announced it will remain in San Diego through 2021. With more than 130,000 attendees from across the world, Comic-Con is the San Diego Convention Center’s largest event and is estimated to generate $135 million regionally and $2.8 million in tax revenues for the city. Plus, it makes for some great people watching. Read more.
 
  SD ushers in new era of precision medicine
As the most patent intensive genomics market in the U.S., San Diego is leading the charge in a new era of healthcare. Kicking the year off, local genomics giant lllumina unveiled a new machine that is expected to sequence a whole genome for less than $100, in less than one hour – down from $1,000 in 2014. Also making waves in the genomics space, Edico Genome set (another) world record by processing 1,000 pediatric genomes in two hours and twenty-five minutes. Read more about the industry in the first-ever genomics study, which EDC released at BIO 2017.
 
  Local universities expand, bolster talent pipeline
San Diego universities produce a top-tier talent pipeline for employers both here and across the globe. And now more than ever, San Diego State University, UC San Diego, Point Loma Nazarene University and other locals are expanding programs and campuses to accommodate increased enrollment and industry needs. This year's university successes include:
  • UC San Diego broke ground on a state-of-the-art facility in East Village that will connect students to downtown's diverse, entrepreneurial community
  • San Diego State University quantified its impact, highlighting $5.67 billion in economic activity and 42,000 jobs supported
  • Local philanthropist T. Denny Sanford donated $28 million to National University System to address critical needs in teacher education, PreK-12 instruction and nonprofit fundraising
 
  San Diego tops the charts
San Diego made its presence known in many of this year's national rankings. From the region's entrepreneurial culture to its quality of life, top-tier publications and organizations took notice of what San Diego brings to the table. Here are some of our favorite rankings of the year: 

 

December 8, 2017

"Congressional action needed to replace San Diego’s aging airport terminal" was originally published in the San Diego Union-Tribune, authored by Mark Cafferty and Joe Terzi.

When you think about the region’s economic prosperity — today and tomorrow — all roads lead to San Diego International Airport. Tourism, business, global trade, the innovation economy, even the defense sector all depend on it.
 
Last year, our airport served almost 21 million passengers. Terminal 2, expanded several years ago, is a welcoming stage for San Diego. Yet Terminal 1 — now 50 years old and used by Southwest, Frontier and Alaska Airlines — not so much.
 
That is why the Airport Authority is refining the Airport Development Plan, which includes replacing Terminal 1. But there is a catch — paying for it. Right now, congressional action to lift the cap on the Passenger Facility Charge (PFC) is being debated — again — and it is essential for our airport and for our region.
 
The San Diego County Regional Airport Authority is the airport owner and operator, and it has been busy making a stream of improvements over the past decade. These include the expansion of Terminal 2, a central receiving and distribution center, new general aviation facility, new rental car center using a new on-airport roadway to access the terminals, a parking structure and new international arrivals facility under construction, and much more....
 
Read the full op-ed online here.
TAGS
September 29, 2017

By now, just about everyone has heard the news about Amazon and its pursuit to develop a second headquarters operation (HQ2), somewhere in North America. The announcement came out through Tech Crunch and The Wall Street Journal last month and spread like wild fire through economic development communities and elected offices across the nation. Suffice it to say that Amazon has created one of the most competitive business attraction processes in history. Cities, counties, even states, are bending over backwards to make their areas fit the profile that Amazon is seeking: a metro or suburban region with more than 1 million people, the ability to attract and retain tech talent and other amenities like direct flights to key markets.

With the input of EDOs and partners across the county and state, San Diego Regional EDC is coordinating a regional response to Amazon’s HQ2 proposal.

On paper, the region checks all the boxes that Amazon lists in its RFP. In addition, the region has a handful of quality sites that meet the requirements of their build out: ability to deliver 500,000 ft2 by 2019 and up to 8 million ft2 in subsequent phases. San Diego also has a top-tier tech workforce (Amazon has stated they could hire up to 50,000 people) and quality of life that is unparalleled throughout most of the world. But when you look beneath the surface, San Diego also needs to realize that Amazon is commanding what will inevitably be record-setting incentive packages, an area where the State of California has scarcely been competitive, and for good reason. Incentives rarely yield impacts that exceed the costs. Further, when trying to find the location for a truly Life. Changing. company, incentives usually are nothing more than marginalia. Talent, quality of life and the prospect of being able to succeed are ultimately the more important factors. Nonetheless, the process that Amazon has put forth will command hundreds of millions, if not billions in incentives – amounts that can change minds.

Second, San Diego can’t change its geography. There has been debate throughout this process whether being in the same time zone as Seattle (Amazon's current HQ) would be a blessing or a curse. While there are “experts” on both sides of the argument, we ultimately don’t know what Amazon is looking for: West Coast ease of access to Seattle, East Coast access to financial and political centers and new talent pools, or somewhere in between. Only time will tell.

In summary, we don’t know where Amazon will ultimately end up. As an EDO, EDC is excited about the opportunity to bring our region together and present our best opportunities. It’s a good test to see just what we can do when the right opportunity comes along. In conjunction with partners from around the county and state, EDC will submit a response to Amazon’s RFP ahead of its October 19 deadline. After that, it’s anyone’s guess.

September 21, 2017

EDC officially launched San Diego: Life. Changing., a campaign to raise San Diego’s profile and attract and retain top STEAM (Science, Technology, Engineering, Art, Math) talent in the region. SDlifechanging.org includes information about living and working in the San Diego region, and will soon include a digital toolkit to assist companies in their recruitment efforts.                          

The campaign was launched at a specially-themed San Diego: Life. Changing Night at the Padres game on September 19, with more than 15,000 in attendance.

San Diego: Life. Changing. communicates San Diego’s evolving value proposition, driven by companies and people looking to change the world and upgrade their quality of life.                                                                                                               

“We’re not Boston, New York, San Francisco or Los Angeles. And we don’t want to be,” said Mark Cafferty, president & CEO, San Diego Regional EDC. “This campaign was developed by San Diego…and for San Diego to communicate the unique opportunities and experiences our region offers to companies and employees alike.”

Extensive research proves that talent fuels economic growth, drives corporate decision-making and fuels entrepreneurship. If San Diego wants to remain economically competitive, it must continue to attract a talent pool that appeals to global companies.

The launch of the campaign is the culmination of Phase I of a year-long effort to refine a cohesive identity to attract and retain STEAM talent in the region. Hailing from life sciences and tech industries, nearly 100 companies with a San Diego presence have joined the “San Diego Brand Alliance” including Illumina, Human Longevity, Inc., SONY, ViaSat, Intuit – as well as many startups – and have provided feedback on potential recruiting tools and other San Diego assets.

“San Diego holds such tremendous opportunities for candidates, yet when recruiting top talent from outside of the region we still encounter the false perception that career options here are somewhat limited,” said Melinda Del Toro, senior vice president of People & Culture, ViaSat and vice-chair, San Diego Brand Alliance. “The San Diego: Life. Changing. campaign reinforces the message we’ve been telling candidates for years: San Diego is a dynamic, rich environment with incredible opportunities to have both the career and life you want, that you just don't find in other regions.”

Over the next two years, San Diego: Life. Changing. will continue to build out SDlifechanging.org to include full company profiles, a video library and additional recruiting tools for companies. In 2018, EDC will look to partner with local organizations to deploy the campaign in specific markets across the country.

Learn more at SDlifechanging.org and follow along at #SDlifechanging. San Diego-based companies can request access to the recruiting toolkit online here.

 

Please see press kit and FAQs for additional information about the campaign. 

July 14, 2017

In early 2017, the Brookings Institution’s Metropolitan Policy Program selected San Diego, along with Indianapolis and Nashville, to participate in a six-month intensive learning lab focused on inclusive economic development. During the lab, EDC worked alongside the City of San Diego, the Jacobs Center for Neighborhood Innovation, and UC San Diego extension, to develop a deeper understanding of specific barriers to economic inclusion impacting a variety of populations across the region. The outcome of the learning lab is a data-driven narrative that will inform EDC’s strategy as we work towards an economic development agenda that benefits more people, companies and communities.

San Diego is flourishing economically, with an innovation economy and a culture of collaboration that is driving growth and transformation. According to a Brookings analysis of 50 US metros, San Diego ranks 6th in upward mobility, meaning there is a greater likelihood that an individual born into San Diego’s lowest income quartile will end up in the highest income quartile. This fact, backed by the accomplishments of a range of programmatic models and initiatives by partner organizations – Accion, Connect, CDC, Junior Achievement, to name only a few – proves the success this region has demonstrated in terms of connecting communities to the drivers of our economy.

With an unemployment rate of 3.9 percent, the region is approaching full employment, meaning companies have incentives to offer pay raises and compete for talent. However, a 2016 study by San Diego-based Center for Policy Initiatives found there are one million individuals in San Diego that are living below self-sufficiency standards. This means that one third of our population cannot afford a no-frills cost of living without public or private assistance.

A nationwide battle for talent, a soaring cost of living at home, and a growing number of San Diegans unable to make ends meet are combining to form an unequivocal threat to our regional competitiveness. We cannot afford to ignore the large parts of our region that are disconnected from the engine of growth.

EDC, with a mandate to mobilize the business community around a broad economic development strategy, has committed to mainstreaming access and opportunity for all San Diegans into that overarching strategy. Over the duration of the 6 month learning lab, EDC interviewed over 25 companies, agencies, and organizations who are engaged in innovative and impactful best practices that guide families, individuals and companies on a path towards greater economic prosperity. We hosted Brookings research teams, and worked with public, private and nonprofit partners to convene dozens of roundtables and tours across the region. And we built a data-driven narrative that outlines the costs to our competitiveness of the growing number of San Diegans without access to opportunity, networks, and skills. .

For us the work is just beginning. As the learning lab comes to a close, we begin to look at the next phase: strategy. We will continue to lean on our growing network of partners and stakeholders over the coming months as we work with and through them to craft a plan that works to make our economy more inclusive, more competitive, and more resilient. Stay tuned.

July 11, 2017

Read the full profile here.

June 26, 2017

This op-ed was originally published by San Diego Union-Tribune, and authored by Matt Cole, Magda Marquet and Michelle Sterling.
 
This is a time of profound disruption in the global economic system: The rules of global commerce are shifting rapidly, the pace of innovation and competition is generating winners and losers, and political volatility around the world is creating an uncertain environment for businesses large and small.
 
Now, more than ever, it is time for cities to step up and lead. And to lead, they must be seen.
 
For San Diego companies, global connectivity matters. Whether it’s biotech or manufacturing, most businesses have customers outside of San Diego, which allows them to add jobs here at home. In 2015, San Diego exported more than $17 billion in goods overseas, as well as billions more in services like software, cybersecurity, engineering and research. Small- and medium-sized businesses produce 92 percent of those goods. According to the Brookings Institution, companies that are global pay higher wages, are less likely to go out of business and increase productivity of the domestic market.
 
Our competitive advantage here in San Diego is that we develop and produce life-saving and life-changing technologies better than almost anywhere else in the world.
 
Four years ago, Althea was a midsize life sciences company with great talent and a compelling business proposition. A personal relationship, and chance meeting at a trade show, began a relationship with Japanese multinational Ajinomoto that has drawn millions of dollars of investment into the region, and enabled Althea to become a global player in the development and manufacturing of biologics and innovative pharmaceuticals.
 
For Cubic Transportation Systems (CTS), a business unit of Cubic Corp., providing public transportation solutions is one example of where public-private partnerships can be applied. From Chicago to Sydney, Vancouver and London, Cubic-powered technology and services move 38 million people seamlessly on a daily basis. This form of service requires collaborative working relationships between metro governments, transportation authorities and the private sector. And more often than not, these relationships need to be built over time by political and civic leadership to be effective.
 
Most San Diegans know the name Qualcomm but are less familiar with the transformative impact that the company has had in the world through its innovation in wireless technologies that power the global economy. What started in 1985 as a startup co-founded by a UC San Diego professor has grown into a company that has invented the technologies that make smartphones indispensable in our lives. With each technology Qualcomm invents and with each employee it hires, people from Brazil to China are learning how San Diego is changing the world.
 
The 600 largest cities in the world account for 60 percent of the global economy, and that economy is increasingly crowded, confusing and contested. Metros need strong leadership, unified voices and targeted strategies to compete. This is why mayors around the world are uniting to take on big issues like climate change, trade and poverty. It is why the mayors of every major U.S. city are on the road like never before, opening doors for the expansion of their regional economies. It is why we, as the Global Competitiveness Council — the voice of the global business community here in the San Diego region — called on Mayor Kevin Faulconer to be on the road to help out.
 
The mayor responded to this call by the business community, and is traveling to Mexico City, Vancouver and London in 2017 to create civic and academic partnerships, to facilitate deals that create jobs for San Diegans, and, most importantly, to create a framework for engagement with our most important markets. Our hope is that companies of all sizes seize the opportunities the mayor is creating.
 
We know what an innovative, collaborative and life-changing place San Diego is; but now more than ever, we need our leadership telling that story here at home and around the world. Our economy depends on it.
 
Cole is president of Cubic Transportation Systems. Marquet is co-founder of Ajinomoto Althea and AltheaDX. Sterling is executive vice president of human resources at Qualcomm.
 
Mayors of every major U.S. city are on the road like never before, opening doors for the expansion of their regional economies.
June 19, 2017

Today, EDC released the first-ever economic impact report on San Diego’s genomics industry. “Cracking the Code: the Economic Impact of San Diego’s Genomics Industry” explores the economic factors that have led to the proliferation of San Diego’s genomics industry, analyzes the region’s genomics standing relative to other U.S. regions, and quantifies San Diego’s genomics-related firms, talent pool, venture capital and more.

As a way to understand San Diego’s proliferation in the genomics industry, the study also includes a web timeline that charts significant milestones at GenomicsSD.org.

As the #1 most patent intensive genomics market in the U.S., San Diego is leading the charge in a new era of healthcare. Personalized medicine and technology are taking precedence, with local genomics companies, research institutions and universities at the forefront.

KEY FINDINGS

Leadership: San Diego is poised to continue its leadership in the field of precision medicine. With more than 115 genomics-related firms, San Diego has companies that handle every aspect of the genomics value-chain – from sampling and sequencing (e.g. Illumina, Thermo Fisher Scientific) to analysis and interpretation (e.g. AltheaDX, Human Longevity, Inc.) to clinical applications (e.g. Celgene, Arcturus Therapeutics), creating a complete ecosystem. Additionally, San Diego conducts the fundamental scientific research, due in part to the concentration of research institutes, that form the basis for many global genomics therapies and interventions.

Capital: While San Diego is home to just one percent of the U.S. population, it received 22 percent – $292 million – of the venture capital funding in genomics in 2016. Continually, San Diego’s numerous nonprofit research institutes command a large share of federal funding (e.g. NIH). In fact, San Diego received $3.2 million federal contract dollars in 2016 – more than any other U.S. region.

Talent: San Diego produces more genomics-ready graduates, relative to the size of its workforce, than any other U.S. region. With nearly 2,000 average genomics-related degrees (biochemistry, cognitive science and bioinformatics) conferred per year, San Diego’s genomics companies benefit from the preparatory work of the region’s top academic institutions. In that vein, it is projected that the local talent pool for key genomics occupations will grow by an additional 10 percent by 2021.

ADDITIONAL KEY FACTS

  • San Diego’s genomics industry has a $5.6 billion annual economic impact, impacting 35,000 jobs in 2016.
  • Among top life sciences U.S. metros, San Diego’s genomics industry ranks  #2 overall, #3 in innovation, #2 in talent, and #4 in growth.*
  • From 2014 to 2016, San Diego generated 371 genomics-related patents. Collectively, 28 local firms generated 120 genomics-related patents in 2016.
  • San Diego is 3.1x more concentrated than the U.S. in key genomics occupations.
  • From 2011 to 2016, San Diego’s genomics talent pool grew by 11 percent, far outpacing the national growth rate of 5.1 percent.

*The genomics scorecard was calculated using a weighted ranking system divided into three categories approximating the genomics ecosystem: innovation, talent, and growth.

EDC’s study was underwritten by Illumina, and sponsored by Alexandria Real Estate, Barney & Barney, Biocom, Eastridge Workforce Solutions, Human Longevity, Inc., Latham & Watkins, Thermo Fisher Scientific and UC San Diego. Additional research support was provided by CBRE.

For a complete copy of the executive summary, click here. For a copy of the full study, click here. To view the web timeline, visit GenomicsSD.org.